From breaking through the "impossible triangle" to building a "compliant financial public chain," a review of the Algorand ecosystem that faces challenges head-on

Written by: Haoren

On September 7, the crypto world welcomed an important milestone: Bitcoin officially became legal tender in El Salvador, making El Salvador the first country in the world to grant legal status to cryptocurrency. Just a week earlier, on August 31, the El Salvador government signed an agreement with the Latin American blockchain asset tokenization and financial infrastructure company Koibanx to collaborate on developing blockchain infrastructure, which will be based on the Algorand blockchain.

In the current competitive landscape of public blockchains, what allows Algorand to "stand out"?

In terms of technology, Algorand has made targeted optimizations for the blockchain's "impossible triangle" (decentralization, scalability, security). For scalability, Algorand uses Verifiable Random Functions (VRF) to randomly select block producers and validators. Once selected, producers and validators only need to broadcast a short message to prove their identity. The number of messages exchanged in the network for each new block does not change with the increase in the number of users, so even as the user base grows, the system can still maintain a high TPS (transactions per second). Algorand's TPS is 125 times that of Bitcoin.

In terms of security, because the VRF is used to randomly select producers and validators, and the selection process is entirely independent of the nodes, attackers in the Algorand network cannot know in advance who the next block producer and validator will be, thus making it impossible for them to carry out an attack. Specifically, the identities of producers and validators are only disclosed when they confirm they have been selected and broadcast the corresponding proof. At that moment, even if attackers immediately employ various attack methods, they cannot prevent the correct information about the new block from spreading in the network.

In terms of decentralization, every round of block producers and validators in Algorand is randomly selected, and there are no barriers to joining the network, making it completely decentralized.

Algorand positions itself as building a "compliant financial public chain". Additionally, Algorand has been committed to assisting the traditional financial industry in its business transformation and helping blockchain technology expand outward. Generally speaking, before governments and large financial institutions adopt any blockchain technology, compliance is the first consideration, as compliance typically ensures security, and compliance is precisely an inherent label of Algorand (having obtained Islamic law compliance certification; being one of the first public chains to join the "BSN Open Alliance Chain Project"; becoming a member of the International Swaps and Derivatives Association "ISDA", etc.).

We have outlined the key projects in the Algorand ecosystem and found that most of the projects are related to finance, including decentralized finance (DeFi), such as DEXs, lending, digital securities, and real asset tokenization. Many traditional financial institutions are also using the Algorand blockchain for business transformation. In addition, Algorand collaborates widely with governments, environmental agencies, and others to leverage blockchain technology to help them better conduct their business.

DeFi

DEX

Tinyman

Tinyman is a decentralized exchange that allows users to trade any Algorand Standard Asset (or Algo) using an automated market maker (AMM) algorithm through a community-centered, low-cost, fast, and completely permissionless Tinyman protocol.

Algodex

Algodex is a highly decentralized exchange where the order book is entirely on the Algorand blockchain.

IDEX

IDEX is a decentralized hybrid liquidity DEX (using a combination of order book and AMM mechanisms) that supports limit orders and market orders, allowing multiple trades to be executed at once.

Lending

Genesis

Genesis Global Capital, LLC is part of the Genesis Group and is a full-service digital currency prime broker, providing a single access point for selected qualified individuals and global institutional investors. The company offers a fully integrated platform for trading, lending, and custody of digital assets, creating new opportunities for yield while enhancing capital efficiency for trading parties.

Algofi

Algofi is a fast, low-cost cryptocurrency lending market on the Algorand blockchain.

Folks Finance

Folks Finance is a capital market protocol for borrowing and lending built on the Algorand blockchain.

Digital Securities

Securitize

Securitize provides trusted compliance solutions for the issuance of digital securities for global enterprises. Securitize's compliance platform and protocol offer a mature full-stack solution for issuing and managing digital securities (security tokens).

Stonize

Stonize is an Italian fintech company whose end-to-end platform simplifies the issuance, management, and transfer processes of compliant digital securities.

Archax

Archax is a FCA-authorized digital securities exchange that provides services for trading digital securities, VASPs (Virtual Asset Service Providers), brokers, custodians, and more. Archax aims to provide institutional investors with a scalable, high-performance exchange for trading digital securities.

Real Asset Tokenization

Vesta Equity

Vesta Equity combines real estate tokenization with smart contracts, allowing homeowners to sell a portion of their homes to investors while retaining their right to reside.

AssetBlock

AssetBlock focuses on real estate tokenization and provides investment opportunities in high-quality real estate, while lowering the barriers to real estate investment through tokenization.

QuantmRE

QuantmRE enables homeowners to access cash without incurring additional debt (no loans, no interest, no monthly payments) in exchange for a portion of their home's existing and potential future value.

Others

Yieldly

Yieldly is a DeFi interconnect platform developed on Algorand, offering cross-chain token swaps, multi-asset staking, and prize games.

Republic

Republic is a private investment platform and technology service provider composed of numerous operating entities, allowing anyone to invest in early-stage companies. The platform has over 500,000 users, with a minimum investment of $10. Currently, the Republic platform has seen over $100 million in user investments, with a funding success rate exceeding 90%.

ARCC

ARCC.one is a microfinance platform with its own token ARCC, where users can earn ARCC by completing surveys. The company aims to break the cycle of poverty, exploitation, and wealth disparity in emerging markets through the decentralized network effects of blockchain.

Mese

MESE.io is a micro-stock exchange that primarily offers synthetic asset trading for securities such as Google, Twitter, Tesla, and Microsoft (dividing each share into 10,000 parts for investors). This protocol is currently in the testing phase.

Cudo

Cudo is a decentralized cloud computing network that has created a distributed computing platform enabling businesses and individuals to leverage the computing power of an underutilized network of devices to scale their business processes. The CUDOS Validator Network (CVN) provides blockchain developers with access to highly scalable computing resources at a fraction of the cost required to run on Layer 1 protocols, eliminating scalability issues for many of these developers' applications.

Monerium

Monerium was founded by the former governor of the Central Bank of Iceland and is a company developing electronic transactions of fiat currencies using blockchain technology, with the ultimate goal of issuing a regulated, asset-backed, convertible electronic currency.

Realio

Realio is an end-to-end, blockchain-based SaaS platform for the issuance, investment, and lifecycle management of digital assets.

Stablecoins

Circle

Circle is a global financial technology company that enables businesses of all sizes to leverage stablecoins and public blockchains for global payments, expanding commercial and financial applications. Circle's USDC is the fastest-growing fully-backed stablecoin in the world, with a circulation of $2.3 billion.

Tether

Tether utilizes blockchain technology to allow users to store, send, and receive stablecoins. This enables investors to take advantage of the speed and security of digital assets while maintaining the everyday utility of fiat currencies. In terms of trading volume, USDT is the most widely traded cryptocurrency and has the third-largest market capitalization among all cryptocurrencies.

e-Money

e-Money is the issuer of the stablecoin NGM.

Marshall Islands

The Republic of the Marshall Islands is the first country to adopt a national digital currency, with its national digital currency SOV developed using Algorand's technology.

Meld Gold

Meld Gold is an Australian startup that tokenizes gold, allowing investors and consumers to trade using both physical gold and digital tokens representing precious metals.

Stablecorp

Stablecorp is a joint venture between Canada's largest crypto asset management company 3iQ and blockchain development leader Mavennet Systems. The company is behind the issuance of QCAD, the first fully compliant Canadian dollar stablecoin designed for the mass market.

NFTs

SIAE

SIAE (Italian Society of Authors and Publishers) was founded in Milan in 1882 and is a public economic institution and copyright management member base, ranking sixth among global collection companies. SIAE has developed an open ecosystem for copyright management using Algorand, having launched over 4 million NFTs, helping nearly 100,000 creators earn copyright income.

AB2.Gallery

AB2.Gallery is a decentralized marketplace for crypto art assets on the Algorand blockchain.

Opulous

Opulous is a P2P financing platform that helps music artists bypass traditional institutions like banks to obtain funding directly.

ZestBloom

ZestBloom is an NFT platform built on the Algorand blockchain.

ANote Music

ANote Music enables publishers, record labels, and artists to sell music rights, introducing a new financing system while providing users with new investment opportunities and the chance to own shares in promising artists.

Gaming

Smile Coin

Smile Coin is a decentralized gaming portfolio and payment processing platform that allows users to view, manage, and track their gaming activities on an open blockchain to achieve decentralization of gaming activities. Smile Coin was originally deployed on Ethereum but migrated to Algorand due to scalability and performance limitations.

DRL

DRL (Drone Racing League) is a company that hosts competitions for drone racing, where drones are small and equipped with cameras, allowing users and drone operators to experience the drone's perspective through head-mounted devices. DRL utilizes Algorand to facilitate transactions, issue NFTs, and more.

OTOY

OTOY is a cloud graphics company whose rendering network can convert GPU computing power into a decentralized economic network connecting 3D assets through the RNDR token.

RHOVIT

RHOVIT is a GameFi content platform that helps content creators monetize their content. (Risk warning: The project's website is inaccessible, and the official Twitter account is inactive).

Exchanges

Binance

Binance is a cryptocurrency exchange and is currently the largest exchange in the world by daily trading volume. It was founded in 2017 and is registered in the Cayman Islands.

Coinbase

Coinbase was founded in 2012 and is a compliant exchange listed on the NASDAQ in the United States.

Bithumb

Bithumb is a cryptocurrency exchange founded in South Korea in 2014.

FTX

FTX is a cryptocurrency derivatives exchange founded in 2019, with its own token FTT.

Infrastructure and Tools

Wallets

Ledger

Ledger primarily produces hardware wallets, including Ledger Nano X and Ledger Nano S. Ledger hardware wallets integrate certified chips that can withstand complex attacks and securely store private keys and other cryptographic data. Through the accompanying application Ledger Live, users can securely manage up to 1,500 tokens.

Bitpie

Bitpie is a multi-chain wallet that provides users with secure, private asset management as well as trading and application services.

Cobo

Cobo is a professional online digital asset management wallet that supports both cloud wallets and HD wallets, allowing users to switch freely between the two to meet different needs. It currently supports over 30 blockchain assets, including BTC, ETH, EOS, TRX, XRP, and more than 500 ERC20 tokens.

Coinomi

Coinomi was founded in 2014 and has never been hacked, supporting over 125 blockchains.

My Algo

My Algo is a web wallet for Algorand that employs a non-custodial security mechanism, helping users interact directly with the Algorand blockchain, allowing them to securely store and encrypt private keys in their local browsers and use private keys on Ledger hardware wallets. MyAlgo supports multiple wallet applications, Algorand Standard Assets including USDT, and Algorand's three major networks.

Trust Wallet

Trust Wallet is Binance's official mobile wallet, providing users with a secure and convenient option for storing funds outside the Binance platform, with various built-in features further enriching the experience of using crypto assets.

Exodus

Exodus is a cryptocurrency wallet available in desktop, mobile, and hardware versions, supporting sending, receiving, and exchanging over 100 cryptocurrencies.

Payments

Mugglepay

MugglePay is a consumer-to-business (C2B) payment solution that enables instant and low-cost settlements globally through cryptocurrency.

Bleumi Pay

Bleumi is a blockchain technology company based in Boston that focuses on payment solutions, enabling businesses to adopt digital currencies in everyday payments and other payment use cases.

Wyre

Wyre is an exchange that provides cryptocurrency-to-fiat exchange services and compliance solutions through APIs and dashboards.

Browsers

Algoscan

Algoscan is a blockchain search and analysis platform built on the Algorand network.

Algoexplorer

Algoexplorer is a browser and API for the Algorand blockchain.

SDKs

Java

Java is an object-oriented programming language that can be used to write cross-platform applications.

Javascript

JavaScript is a prototype-based, first-class function language that is multi-paradigm, supporting object-oriented programming, imperative programming, and functional programming.

Go

Go is an open-source programming language that makes it easy to build simple, reliable, and efficient software.

Python

Python is an interpreted high-level general-purpose programming language. Its design philosophy emphasizes code readability, using significant indentation. Its language structure and object-oriented approach aim to help programmers write clear, logical code for small and large projects.

Others

AssetSmith

AssetSmith is a development tool created by the digital engagement platform Jambb, allowing users to mint assets, manage their distribution, and observe changes within a simple application without needing code. AssetSmith allows developers with zero blockchain experience to create and send Algorand Standard Assets (ASA).

Pocket Network

Pocket Network is a decentralized infrastructure API built for Web3 applications.

PARSIQ

PARSIQ is a blockchain monitoring and workflow automation platform that connects on-chain and off-chain applications in real-time, providing end-users with transaction notifications. Through PARSIQ, users can connect blockchain activities with off-chain applications and devices, monitor and protect DeFi applications, and establish custom event triggers to power real-time automation.

Dedit.io

Dedit.io is a blockchain notarization platform.

Blockdaemon

Blockdaemon is a blockchain infrastructure service provider that offers node deployment and staking services, as well as enterprise-level security monitoring services. Blockdaemon supports over 40 blockchain networks in the cloud and on-premises through the Blockdaemon Marketplace, including Ethereum 2.0, Bitcoin, Cardano, Polkadot, Cosmos, SKALE, MobileCoin, and the Lightning Network.

Partner Universities

MIT

Massachusetts Institute of Technology is a private university located in Cambridge, Massachusetts. Founded in 1861, MIT has played a key role in the development of modern technology and science and is ranked among the world's top academic institutions.

UC Berkeley

University of California, Berkeley is a world-renowned public research university located in Berkeley, California, in the San Francisco Bay Area.

University of Waterloo

University of Waterloo is a medium-sized world-class public research university established in 1957, located in southwestern Ontario, Canada, known for its cooperative education (CO-OP) that emphasizes learning and internships.

Stony Brook University

Stony Brook University is a public university in New York State founded in 1957, located in Suffolk County on Long Island, New York. It is one of the youngest universities in New York State and is ranked among the top public universities in New York by various publications. Stony Brook is one of the 62 members of the Association of American Universities (AAU), ranked among the top 40 public research universities in the U.S., and is also in the top 1% of universities globally.

Monash University

Monash University is a public research university located in Melbourne, Australia, a center of culture, arts, and industry. It is a member of the Group of Eight, the Pacific Rim University Alliance, and the International University Climate Alliance, and is recognized as a five-star university in Australia and a leading academic hub in the Southern Hemisphere.

TiE

TiE Global is a non-profit organization dedicated to fostering entrepreneurship around the world since 1992. TiE strives to inspire entrepreneurs through mentoring, networking, education, incubation, and funding projects and events. TiE hosts nearly 2,000 events each year, bringing the entrepreneurial community together to learn from local leaders and network with each other.

Other Ecosystem Projects

Industrial Blockchain

Dust Identity

DUST Identity is a supply chain solution that ensures trusted data and verifiable products are used and tracked throughout their lifecycle, achieving end-to-end traceability. Dust Identity has created a diamond uncloneable security tag (DUST) that uses nano-engineered diamonds to create an uncloneable identity layer on objects.

VeriTX

VeriTX is a digital commerce marketplace for buying and selling digital and physical assets, primarily focused on the aerospace and medical parts industries.

Digital Identity Management

AIKON

AIKON provides cross-chain identity verification and wallet solutions.

FlexFinTx

FlexFinTx is an identity management platform that primarily helps Africans establish their digital identities. Through FlexFinTx, financial institutions, insurance companies, healthcare providers, and other government departments can quickly access the profiles they need to provide services.

InfoCert

InfoCert offers services in digitization, electronic delivery, digital signatures, and document digital preservation through its DIZME platform. The company is the largest certification body in Europe, active in over 20 countries, and is an AgID digital identity operator in the SPID (Public System for Digital Identity Management) field.

Environment

Global Carbon Holding

Global Carbon Holding utilizes blockchain technology to tokenize carbon credit assets in Asia and supports the establishment of a global, transparent market for purchasing certified carbon offsets. GCH holds certified carbon credits that are registered with internationally recognized entities and guaranteed by tokens generated on the blockchain. The global carbon credit market had a trading volume exceeding €144 billion last year, and the number of credits being sold continues to grow exponentially. GCH is committed to developing carbon credit projects worldwide and the entire renewable energy investment sector.

ClimateTrade

ClimateTrade is a Spanish company whose main goal is to help businesses achieve their sustainability goals by offsetting carbon emissions and funding climate change projects. Carbon offsets serve as an important balancing mechanism for protecting our world's environment, and ClimateTrade optimizes efficiency for companies to achieve carbon neutrality. The company allows users to enter a marketplace where they can directly offset their carbon footprint by selecting the most suitable carbon credits while recording all their transactions on a private dashboard. It uses blockchain technology to ensure that carbon credits are canceled in the corresponding registries and that the funds promised from sales flow directly to the sources of the projects. ClimateTrade currently collaborates with over 20 international companies and has more than 150 projects, including large enterprises such as Iberia, Melià Hotels, Cabify, and Telefónica.

PlanetWatch

PlanetWatch decentralizes air quality monitoring through IoT sensors, the Algorand blockchain, and direct public participation.

Others

Chainalysis

Chainalysis is a blockchain data analytics company that provides blockchain data and analysis to government agencies, exchanges, and financial institutions in over 40 countries. Chainalysis's compliance tools help reduce fraud, illegal dark web market activities, and attacks on blockchain.

Verady

Verady provides cryptocurrency tax and accounting-related functionalities through the Ledgible platform.

Voyager Digital

Voyager is a cryptocurrency broker that offers a full suite of solutions for retail and institutional investors to trade cryptocurrencies. In addition to trading services, Voyager also provides market data, interactive charts, and professional research products and services.

Cartan

Cartan is a financial technology management consulting firm based in the Cayman Islands that helps clients identify, develop, and implement complex market strategies.

FUB

Ugo Bordoni Foundation (FUB) was established in 1952 and is named after Ugo Bordoni, a professor of engineering at the University of Rome. The foundation supports scientific research and applications in telecommunications and information technology. FUB was established by the Ministry of Post and Telecommunications and has a long history of research and application in the telecommunications field. Through the interaction between basic research and applied research, FUB is able to combine research in information and communication technology with the design and implementation of innovative services for government agencies and to determine national system policies in this field.

Attestiv

Attestiv is a tamper-proof media verification platform and product provider for the insurance, IoT, public safety, financial services, and news media sectors. Founded in 2018, Attestiv can verify the authenticity of digital media and data, helping businesses establish efficient processes, improve customer experiences, and provide standards for information exchange.

Delchain

Delchain offers services and products including: private banking, digital asset custody, capital markets (trading, market making, lending of digital assets), and token issuance consulting.

Mentat

Mentat Innovations provides comprehensive AI and blockchain solutions for businesses.

1World Online

1World Online is a blockchain-driven platform that unifies the value of data and advertising into a multi-in-one participation-driven model. Through 1World Online, websites can achieve higher traffic metrics, business teams can better understand and analyze audiences for profit, and editors and journalists can access timely and high-quality news content to provide readers with a better experience.